I had a bundle route for our local newspaper.They did not take out taxes and i'm not sure since i'm single and they did give me the 1099 form if i have to file taxes since i done some research and found that i'm under the requirement of gross income(I think it was 7700.00 or something like that).....Any opinions ??Help !!
2007-02-20 06:00:45 · 7 answers · asked by hotrod_shell 1 in Business & Finance ➔ Taxes ➔ United States
Yes, you would have to file.
Assuming you had no business expenses to offset the $7,500 of self employment income (1099 Misc), then you would have no Federal Income Tax because your standard deduction and personal exemption is more than that.
BUT, you would owe self employment tax of $1,060.
($7,500 x .9235 x .153 FICA employee and employer portion) = $1,060
Now any business expenses you have to offset the $7,500 would be very helpful in bringing the s/e tax down.
2007-02-20 07:15:40 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you had received a W-2, saying taxes were taken out for social security and medicare, then you wouldn't have to file if your income was less than $8450. But for 1099 income, the filing limit is $400, so yes you definitely have to file. You won't owe income tax if you're not someone's dependent, but will owe self-employment tax of 15.3% on your net (what you were paid, minus your expenses of earning that money).
2007-02-20 13:30:29 · answer #2 · answered by Judy 7 · 0⤊ 1⤋
You do have to file (for the reasons stated in previous answers). If this is your only source of income, the you will probably owe the government money.
Did you keep track of any expenses associated with this route? You are allowed to deduct any expenses you incured from your business (yes, the IRS considers this a business and not a job). Did you have to buy rubber bands? Bags? You probably did not have many other expenses except for your car. The IRS lets you deduct from that $7,700 $.44 for every business mile that you drove. It is up to you to keep track of it. But if you drove a 50 mile route for 200 days, then you get to claim 10,000 miles, which means you get to reduce $4,400 from your business income.
If you do not claim any expenses, then you will owe the government about $1,100! You best figure out what your expenses and mileage was for 2006 to get the figure down.
2007-02-20 07:10:21 · answer #3 · answered by j-man 4 · 0⤊ 0⤋
i suggest that you look it up again. 1099 income is self employment income and the filing requirement for the self employed is 400.00 or more in gross income.(your way over that) also in additon to your federal tax liability you would be required to pay self employment tax (social security and medicare) which is currently 15.3% of net income (after allowable deductions). the good news is... you are allowed a deduction of one half the self employment tax on your schedule 1040.
2007-02-20 06:09:49 · answer #4 · answered by amazed 3 · 2⤊ 0⤋
Yes, you need to file.
You only read part of the filing requirement.
If you are self-employed, the filing requirement is only $400.00.
2007-02-20 06:05:20 · answer #5 · answered by Wayne Z 7 · 3⤊ 2⤋
Wayne Z is correct.
2007-02-20 06:08:54 · answer #6 · answered by Anonymous · 1⤊ 0⤋
he said he worked for the newspaper, thats
not self-employed. dont have to file if thats
all income.
2007-02-20 06:11:03 · answer #7 · answered by RoHo 7 · 0⤊ 3⤋